Abstract:
The complex changing of company’s environment marked by rapid and uncertain changes of internal
and external environment should be responded quickly by the organization to face the fierce business
competition. Transformation is a must for organizations to obtain a better change of behavior, way of thinking,
methods and way of working. This study aims to analyze the effect of innovation, knowledge and technology
on organization’s development through organizational transformation strategy. This research used a
quantitative approach. The data was obtained through questionnaire and interview. The methods used were
sampling determination methods, namely stratified proportional random sampling and convenience random
sampling. The respondents in this research were 140 tourism businessmen in South Sulawesi Province. Path
analysis method was used to analyze the effect among the variables. The findings of this study indicate that
changes of company’s business environment through the changing process of innovation, knowledge and
commitment encourage the transformation of organization and affect the organization development directly and
indirectly through organization transformation.